Health Exchange Overhaul Moves Forward

02.08.2010 by Elizabeth Ziegler

Speaker of the House David Clark

(KCPW News) A fix for the flawed Utah Health Exchange is on the move in the House of Representatives after months of debate. Speaker of the House David Clark says his bill addresses serious problems and includes what he describes as a slight modification of the state’s “community rating” system. But Utah Health Insurance Association Executive Director Kelly Atkinson testified in a health committee meeting Friday that Clark’s plan could backfire.

“What you’re trying to do is bring the cost down for some of the higher risk. But because you don’t mandate participation, you don’t require insurance to be bought in this state, what we’re concerned about is that those companies that get that higher rate increase will simply walk out the door and say, ‘We no longer offer insurance,’” he told lawmakers.

A modified community rating, which is included in Clark’s legislation, prohibits insurance companies from basing their rates on health history, and instead requires them to base it on factors like age or geographic area.

The Utah Health Exchange is a Web site that allows employees to select plans that best suit their needs, instead of their employer deciding for them. It was supposed to decrease premiums, but during its limited launch last year, some plans dramatically increased in price. But Clark’s legislation would try to fix this by opening up the exchange to all small businesses and some large employers. He says the exchange won’t help everyone, but it should eventually make employer-based plans more affordable.

“The exchange is the mechanism that helps the consumer and as long as the consumer is involved in the spending of their health care dollars, that is where the savings will come from,” said Clark.

Clark’s legislation passed out of the House Health and Human Services committee on Friday, along with two other health reform proposals. They all received unanimous support and now head to the House floor for consideration.